Bam reports nine-month loss

The impact of impairment charges, together with continuing difficult conditions in its domestic and other European markets, have dragged Dutch contractor Bam to a nine-month net loss of €233 million. This contrasts with net profit of €84 million for the same period last year.

The result included impairments totalling €398 million, €247.6 million of which came from write-downs in its property portfolio, which Bam also reported during the first six months of the year.

The contractor also saw revenues slide 4% year-on-year to €5.2 billion – a decline that was driven by its civil engineering division, which reported a drop in revenues to €2.6 billion for the first nine months of 2012, compared to €2.7 billion a year ago.

Overall, reorganisation costs totalled €16 million for the nine-month period.

Nico de Vries, chairman of Bam’s executive board said the nine-month results reflected high pressure on current contracts in the markets in which it operates, particularly the Netherlands.

“Given the tougher conditions, the operational performance of our businesses is generally satisfactory. With the seasonally stronger fourth quarter to come, we maintain our forecast of a result before tax and impairments from continuing operations of at least €100 million for the full year 2012 including expected total restructuring costs of approximately €37 million,” Mr de Vries said.

Outlook

He added that, for the 2013 to 2015 period, the contractor forecast overall limited improvements in conditions in its markets.

“Our emphasis will be on operational improvement and targeted growth initiatives in services, multi-disciplinary projects and international niche markets, combined with a prudent financial strategy,” he said.